The rapid increase in inflation, energy prices and the cost of everyday things in the UK has put millions of families in financial trouble. In this difficult time, the UK government has taken a relief step and confirmed to give a one-time ‘Cost of Living Support’ of £650, which will provide some relief to crores of needy families.
Why is this £650 assistance necessary?
In the last few years, the prices of essential items in the UK have started skyrocketing – be it food items, electricity bill, rent or petrol. This rising inflation has had the biggest impact on those families who were already living on limited income.
In such a situation, this assistance amount of £650 announced by the government is not just a sum of money, but a sigh of relief for those who are struggling to meet their monthly expenses. This amount will be deposited directly into the bank account of those who are eligible – without any hassle of application or process.
Who are eligible for this assistance?
If you were availing any one means-tested benefit (ie income-based government assistance) between 1 March 2025 and 31 May 2025, then you will come under this scheme. It includes the following government benefits:
- Universal Credit
- Pension Credit
- Jobseeker allowance (JSA) on an income basis
- Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
Important information: If you are only receiving non-means-tested benefits such as state pension or disability allowance, you will not currently receive assistance under this scheme, but a separate scheme may be introduced for such categories in the future.
Payment deadline – when will the money be received?
The government has also explained when this assistance amount ought to be disbursed. The payment shall be in three instalments within the month of June 2025 as follows:
| Date | Payment Status |
|---|---|
| 15 June 2025 | First batch of payments starts |
| 20 June 2025 | Over half of eligible households paid |
| 30 June 2025 | All eligible payments expected to be completed |
No need to apply
Among the best things about this scheme is that there is no filling of an application form and no paper work to do. The Department of Work and Pensions (DWP) will pay it directly to your bank account should you be eligible to get it.
In case you are uncertain of whether or not you qualify then you can obtain information in DWP official site or in the helpline.
Things to note
- Each household will receive only one payment, even if there is more than one eligible person living in the household.
- You must have received the benefit between March 1 and May 31, 2025.
- This payment will be tax-free and will not affect your existing government benefits.
- Beware of fraud: The government will never ask you for bank details. If you are eligible, you will receive the payment automatically.
How can this money be used?
The citizens are not obligated in what manner to spend this amount and the majority of them would spend it in fulfilling their basic needs:
- Rent or home loan instalments
- Electricity and gas bills
- Groceries and household items
- Child care
- Medical emergency expenses
- Repayment of old debts
The fact that some local councils have reported that the demand of food banks has decreased in June indicates that the scheme is positive too.
What to do if you are not eligible?
In case you have not managed to qualify this time, then you need not panic. The government has also expressed that further relief programs are going to be launched in the months to come, including:
- Energy support scheme for the winter months
- Council grants for households that are outside of mainstream benefit schemes
Final thoughts
This £650 support is not just a government announcement but brings some relief to the lives of millions of people living under financial pressure. It will be deposited directly into the bank account, with no extra effort required. The transparency, immediacy and accessibility of this scheme make it impressive.
If you are eligible, check your bank account for a payment labelled “DWP COLP”** by **30 June 2025. This small amount could be a big support for many people, especially in this tough economic summer season.
Related information
Important website: https://www.gov.uk/guidance/cost-of-living-payment
Helpline: DWP Cost of Living Payment Helpline – 08xx xxx xxxx (Monday to Friday, 9am to 5pm)
FAQs
Q1. Who is eligible for the £650 Cost of Living Payment?
Individuals receiving certain means-tested benefits between 1 March and 31 May 2025.
Q2. Do I need to apply for the payment?
No, eligible recipients will receive it automatically from the DWP.
Q3. When will I receive the payment?
Payments will be made in phases between 15 and 30 June 2025.
Q4. Will this payment affect my other benefits?
No, it is tax-free and won’t impact your existing benefits.
Q5. What if I’m not eligible?
The government may announce more support schemes later in the year.
